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Research In Motion Ltd Stock Sell Recommendation Reiterated (BBRY)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK (
TheStreet)
-- Research in Motion (Nasdaq:
BBRY) has been reiterated by TheStreet Ratings as a sell with a ratings score of D+ . The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins.

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Highlights from the ratings report include:

RESEARCH IN MOTION LTD has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, RESEARCH IN MOTION LTD reported lower earnings of $2.23 versus $6.36 in the prior year.

The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 96.6% when compared to the same quarter one year ago, falling from $265.00 million to $9.00 million.

Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, RESEARCH IN MOTION LTD's return on equity significantly trails that of both the industry average and the S&P 500.

The gross profit margin for RESEARCH IN MOTION LTD is currently lower than what is desirable, coming in at 25.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.33% significantly trails the industry average.

The revenue fell significantly faster than the industry average of 13.9%. Since the same quarter one year prior, revenues fell by 47.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

Research In Motion Limited designs, manufactures, and markets wireless solutions worldwide. Research in Motion has a market cap of $7.86 billion and is part of the technology sector and telecommunications industry. Shares are up 26.5% year to date as of the close of trading on Monday.